Homework Help is Here – Start Your Trial Now!
Business
Accounting
6.1. ABC Merchandising had the following transactions: 1. Purchased goods and made payment by cash in bank at $6,600. Freight-in was $220 (with VAT), paid by cash on hand. 2. Purchased materials on account for $7,350 (including 5% VAT) with eredit terms 1/10, n/30 (if customer made payment within 10 days, they will received 1% discount) 3. Purchased tools on account for $4,400 (including 10% VAT). 4. Return a part of tools purchased in (3) for sales price with VAT of $2,200 5. Paid within the discount period for materials in (2). 6. Paid for tools in (3) by cash in bank. Requirement: Record transaction

6.1. ABC Merchandising had the following transactions: 1. Purchased goods and made payment by cash in bank at $6,600. Freight-in was $220 (with VAT), paid by cash on hand. 2. Purchased materials on account for $7,350 (including 5% VAT) with eredit terms 1/10, n/30 (if customer made payment within 10 days, they will received 1% discount) 3. Purchased tools on account for $4,400 (including 10% VAT). 4. Return a part of tools purchased in (3) for sales price with VAT of $2,200 5. Paid within the discount period for materials in (2). 6. Paid for tools in (3) by cash in bank. Requirement: Record transaction

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question
6.1. ABC Merchandising had the following transactions: 1. Purchased goods and made payment by cash in bank at S6,600. Freight-in was $220 (with VAT), paid by cash on hand. 2. Purchased materials on account for $7,350 (including 5% VAT) with credit terms 1/10, n/30 (if customer made payment within 10 days, they will received 1% discount) 3. Purchased tools on account for $4,400 (including 10% VAT). 4. Return a part of tools purchased in (3) for sales price with VAT of $2,200 5. Paid within the discount period for materials in (2). 6. Paid for tools in (3) by cash in bank. Requirement: Record transaction 6.2. Company pay VAT by the tax deduction method, accounting for inventories by perpetual inventory system, determination of price of inventories by FIFO method. Beginning balance: Acc 152: 10.000.000 VND (1000 units of A) Acc 153: 2.000.000 VND (100 units of T) During the period the following transactions occur: Requirement: Record transaction 1. Purchase 5.000 units of A on account, the price (excluded VAT) is 52 million VND, VAT rate at 10%. 2. Purchase 1.500 units of tool T with an invoiced price (with VAT) of 35.200.000 VND, VAT rate at 10%, pay by cash in bank. When checking before receiving, company find out some goods in bad quality. Company complain and ask for a purchase allowance. Three days later, seller accepted a 5% allowance of invoice price (with VAT) paid by cash on hand. 3. Issue 500 units of T from warehouse to be used for administrative purpose. They are estimated to be used up in 3 accounting periods. 4. Issue from warehouse 200 units of A for manufacturing. 5. A tool which was using in accounting department is broken. Its cost is 2 million VND and had been expensed for 1,5 million VND. 6. Purchase on account 1.000 units of goods X for 350 million VND (excluded 10% VAT). When checking before receiving, detect a shortage of 100 units. Normal spoilage for this transaction is 10 units, the cause of the rest is under investigation.
Transcribed Image Text:6.1. ABC Merchandising had the following transactions: 1. Purchased goods and made payment by cash in bank at S6,600. Freight-in was $220 (with VAT), paid by cash on hand. 2. Purchased materials on account for $7,350 (including 5% VAT) with credit terms 1/10, n/30 (if customer made payment within 10 days, they will received 1% discount) 3. Purchased tools on account for $4,400 (including 10% VAT). 4. Return a part of tools purchased in (3) for sales price with VAT of $2,200 5. Paid within the discount period for materials in (2). 6. Paid for tools in (3) by cash in bank. Requirement: Record transaction 6.2. Company pay VAT by the tax deduction method, accounting for inventories by perpetual inventory system, determination of price of inventories by FIFO method. Beginning balance: Acc 152: 10.000.000 VND (1000 units of A) Acc 153: 2.000.000 VND (100 units of T) During the period the following transactions occur: Requirement: Record transaction 1. Purchase 5.000 units of A on account, the price (excluded VAT) is 52 million VND, VAT rate at 10%. 2. Purchase 1.500 units of tool T with an invoiced price (with VAT) of 35.200.000 VND, VAT rate at 10%, pay by cash in bank. When checking before receiving, company find out some goods in bad quality. Company complain and ask for a purchase allowance. Three days later, seller accepted a 5% allowance of invoice price (with VAT) paid by cash on hand. 3. Issue 500 units of T from warehouse to be used for administrative purpose. They are estimated to be used up in 3 accounting periods. 4. Issue from warehouse 200 units of A for manufacturing. 5. A tool which was using in accounting department is broken. Its cost is 2 million VND and had been expensed for 1,5 million VND. 6. Purchase on account 1.000 units of goods X for 350 million VND (excluded 10% VAT). When checking before receiving, detect a shortage of 100 units. Normal spoilage for this transaction is 10 units, the cause of the rest is under investigation.
Expert Solution
steps

Step by step

Solved in 2 steps with 1 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS